Dollar’s reserve currency status worth $33 trillion – paper
Loss of exorbitant privilege would lead to dollar depreciation and rise in real interest rates
The dollar’s status as the world’s reserve currency is worth around $33 trillion, according to a recent paper.
The study, published by the US National Bureau of Economic Research, quantifies the loss of reserve currency status by examining by how much US interest rates and the dollar exchange rate would change if dollar-denominated safe assets, such as US Treasuries, were no longer demanded by foreign holders as international liquidity.
The authors – Zhengyang Jiang of Northwestern University
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Economics
Domestic growth unlikely even if Germany wins World Cup – Nagel
Bundesbank president says momentum will pick up by 2028 and calls for further deregulation
Humans still in charge of AI use at central banks – panel
Speakers at London Meetings share their experiences of adopting new technology
Oil price shock to weigh on growth in Guatemala – IMF
Institution adds that central bank’s current monetary policy stance is ‘appropriate’
Argentina on solid footing to head off oil shock – BCRA
Vice-president says recent uptick in inflation was driven in part by seasonal factors
Euro ‘more appealing’ for both invoicing and reserves, ECB finds
Bank’s annual report on currency’s use draws on findings from Central Banking’s benchmarking
Remote working drove US youth unemployment – NY Fed study
Economists say uptick in joblessness among US graduates predates spread of AI
Haiti’s woes exacerbated by supply shocks – governor
Ronald Gabriel says regional central banks should adopt more internationalist approach
IMF approves $1bn disbursement to Argentina
Board releases funds following agreement in April